2020/2021 IRA Reporting Requirements 101
What a roller coaster ride the year 2020 was! The Congress passed the most substantial changes to IRAs as we've had in almost 20 years due to the SECURE Act and the CARES Act created nothing but confusion in terminology and IRS Reporting. Getting this information right will make the difference in your clients getting a letter and bill from the IRS or smooth sailing through the tax filing process. What's the difference between a 1099-R, 5498, 1099-SA, 5498-SA, 1099-Q, 5498-ESA, 8915-E, 8606 and 5329. Are those enough numbers for you? While we will mostly focus on the IRA reports required by the financial institution vs. the client's own required forms filed with their tax return, the other forms will also have a quick overview. The timing of this informative Webinar is to make sure we have the latest instructions from the IRS in case some of these forms need to be corrected before submission to the IRS by the end of March. Honestly, the IRS has been dragging their feet on the IRA reporting instructions for the last year for rollovers, repayments and postponed contributions and using the terminology interchangeably. This not only breeds confusion but also many reporting mistakes that may have to be corrected before the IRS filing deadlines.